All-in yield is the fully loaded annualized return or cost of capital—including interest, fees, OID, and other charges—not just the coupon printed on the term sheet.

How it works

Venture debt might quote SOFR plus a spread plus an end-of-term payment, warrant coverage, and a non-usage fee on undrawn amounts. Spreadsheet the cash flows you pay versus cash received; solve for internal rate of return—that is all-in yield. For LPs, money-market and subscription-line facilities include commitment fees that raise all-in cost above overnight indexes.

Compare offers on the same maturity and prepayment assumptions. A lower nominal rate with heavy upfront fees can lose to a simpler loan with higher stated interest.

Why it matters

• Founders: CFOs should present all-in yield to the board when choosing lenders—warrants are part of the price.
• Investors: Fund finance teams track all-in yield on credit lines affecting net LP returns.
• GPs: Subscription lines boost IRR timing; all-in yield shows what you pay for that acceleration.

Common mistake

Optimizing for the lowest coupon while ignoring warrant dilution and prepayment penalties. True cost lives in the full package.

Related ideas

Venture debt, warrant coverage, subscription lines, and effective interest rate.